For any renovation or repair to qualify for a tax deduction, the work must qualify under IRS rules as a home (or capital) improvement. Examples of projects that may qualify include new additions, new roofs, whole room renovations, new siding, new heating or air conditioning systems and certain interior renovations such as new floors. In […]

Maybe you see how an off-hours activity can become a profitable company. Or perhaps you have a spouse who brings in sufficient income to support both of you, and you’d like to spend your days at home painting (or photographing) animal portraits and then selling those portraits to their owners. Can you write off the […]

A will has no legal power until it is admitted to probate and a personal representative is appointed by the court. But courts don’t act on their own after your death; someone must file the necessary paperwork. This is a built-in delay that can slow down the process significantly. Further, probate is a public process; […]

Staying proactive and detail-oriented can help you avoid the most common inaccuracies on your business taxes. Easily avoided mistakes are surprisingly common. These errors include providing an incorrect Social Security number, making math errors or entering the wrong bank information. Such mistakes can delay your refund or even cause funds to be deposited into the […]

An annuity is a contract between you and an insurance company that is marketed to provide predictable income in retirement, often to address the risk of outliving savings. The insurance company pays you a fixed or variable income, often through guaranteed periodic payments for either a specified period or your lifetime. Annuities shift a portion […]

Every employer covered by the Fair Labor Standards Act must keep records for each covered nonexempt worker. There’s no required form, but the records must include accurate data about the employee and hours worked plus wages earned. Once you’ve complied on a federal level, thoroughly research your state-specific requirements for each location you operate in. […]

As the IRS explains, a 2% shareholder is someone who directly or indirectly owns more than 2% of the corporation’s stock or stock with more than 2% of the voting power. The business must treat a 2% shareholder as a partner in a partnership for fringe benefit purposes. What does this mean for life insurance? […]

There may be circumstances under which you would want to move assets from a traditional IRA to a Roth IRA. Only people who already have a Roth IRA can complete a Roth IRA conversion, but the conversion can be made even if your current income makes you ineligible for direct contributions to the Roth IRA. […]

The IRS’s annual “Dirty Dozen” memo lists 12 scams you should watch out for. This education effort wants to protect you from tax traps like identity theft or being misled into claiming tax credits you’re not entitled to. Let’s look at these threats, often fueled by social media: Email phishing scams—Email and text scams target […]

If you’re thinking about offering ESOPs to your employees, you might find them appealing because of the way they can help reward those employees who helped you build your business. After all, an ESOP is an aspect of an employee’s retirement plan, and like other tax-advantaged retirement accounts, your employees won’t owe taxes on any […]